Profitability at Newcastle law firm Sintons has fallen following five years of growth thanks to the impact of regulations around personal injury services.

The firm saw a 13.7% fall in operating profit from £4.8m to £4.1m in the year ended January 31 but said the results were entirely expected.

In April 2013, the Jackson Reforms made significant changes to the way law firms recover fees in no win, no fee cases.

Before the reforms lawyers who had clients successful in litigation could charge their base fees plus an additional percentage, known as a success fee, but this is no longer the case.

Accounts filed at Companies House for Sintons showed turnover decreased only marginally from £15.7m to £15.09m during the period.

The firm said work across its commercial, corporate and real estate departments grew more than 60% in the past four years.

During the period, Sintons acted on a number of high profile deals such as the acquisition of two hotels by North East leisure group Tavistock Hospitality and a £23.8m disposal of a retail park in the West Midlands by the Church Commissioners for England.

Work in healthcare has been a particular focus for the Newcastle firm, which recently received a top Legal 500 ranking and built a reputation as an NHS Trust specialist.

Phil Ridley, practice director at Sintons, said: “The results for the year were entirely as we expected. We have a strong and highly capable team at Sintons and in line with our strategy we have seen tremendous growth in areas such as corporate, commercial, real estate and defendant litigation.

“We are widely recognised for our expertise in the healthcare sector whilst our private client and matrimonial teams continue to be renowned for their expert advice and service levels.

“We continue to invest in our people at Sintons, who remain the most important feature of the firm. We are known for our legal excellence combined with our unrivalled personal service, and it is our people who enable us to offer that service. We have made numerous new senior appointments in the last year and look forward with optimism to make the most of the opportunities that lie ahead.”

During the year Sintons increased its headcount to nearly 250 and investment in senior lawyers has added to the firm’s expertise.

Recent additions include partners such as Victoria Armstrong, a healthcare specialist; Paul Nichalls, head of wealth management; and Kevin Anderson, construction specialist.

Pay charged to members as an expense fell from £4.6m to £4.017m and the number of members rose from 28 to 31 during the year.